4 things to consider before beginning a home improvement project

As enticing as a home improvement project might be, no project can be successful until a budget has been established.

Home improvement projects have become de rigueur for today’s homeowners. Be it a kitchen remodel or the ever-popular man cave, home improvement projects remain a goal for many homeowners.

As enticing as a home improvement project might be, no project can be successful until a budget has been established. The right budget will keep homeowners from going deep into debt when improving their homes, ensuring that, upon the project’s completion, they can fully enjoy their revamped castles without the specter of significant debt.

Before beginning a home improvement project, consider the following:

Personal finances: It sounds simple, but you must examine your bank account before starting a home improvement project. Just because a bank will loan out money for a project doesn’t mean the project is affordable. Compare monthly expenses — everything from groceries to mortgage payments — with income, and then determine what’s left that might be able to go toward a project. This will give you a grasp of just what you can and cannot afford.

Credit score: Many homeowners finance home improvement projects with loans from the bank. Particularly in the current economy, securing such loans isn’t easy. Eliminate significant credit card debt before beginning a project. First and foremost, eliminating outstanding debt will free up more money to allocate toward the project. This also will make you more attractive to prospective creditors, increasing your chances of securing a loan and a lower interest rate.

Priorities: Budgeting a home improvement project also involves being honest as to just how necessary the project is. For example, a man cave might be a dream project, but should it be a priority over other things around the house? If wear and tear is taking its toll on the roof, the money going toward the man cave should probably be allocated to replacing the roof instead.

Overrun costs: Not every home improvement project will come in at or under budget. Many, in fact, go over budget due to a host of factors. Plan for the project to go over budget and expect such frustration. Allocate extra money in the original budget for overrun costs. This will reduce stress and frustration, and if the project comes in under budget, then there’s extra money at the end.